The following table gives abbreviated balance sheets and income statements for Costco. ...

70.2K

Verified Solution

Question

Accounting

The following table gives abbreviated balance sheets and income statements for Costco.

Balance Sheet (figures in $ millions)
Fiscal 2019 Fiscal 2018
Assets
Current assets:
Cash and marketable securities $ 9,465 $ 7,722
Accounts receivable 6,284 6,283
Inventories 44,435 44,269
Other current assets 1,622 3,623
Total current assets $ 61,806 $ 61,897
Fixed assets:
Net fixed assets $ 127,049 $ 111,395
Other long-term assets 47,640 46,003
Total assets $ 236,495 $ 219,295
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 46,973 $ 47,060
Other current liabilities 30,817 30,417
Total current liabilities $ 77,790 $ 77,477
Long-term debt 43,714 43,520
Other long-term liabilities 33,439 18,664
Total liabilities $ 154,943 $ 139,661
Total shareholders' equity 81,552 79,634
Total liabilities and shareholders equity $ 236,495 $ 219,295
Income Statement (figures in $ millions)
Net sales $ 523,964
Cost of goods sold 394,605
Selling, general, and administrative expenses 97,804
Depreciation 10,987
Other income/expenses 2,147
Earnings before interest and taxes (EBIT) $ 22,715
Interest expense 2,599
Taxable income $ 20,116
Tax 4,915
Net income $ 15,201

Assume a tax rate of 21%. Calculate the following using balance-sheet figures from the start of the year and Income statement figures from the end of the year:

Calculate the return on assets.

Note: Enter your answer as a percent rounded to 2 decimal places.

Calculate the operating profit margin.

Note: Enter your answer as a percent rounded to 2 decimal places.

Calculate the sales-to-assets ratio.

Note: Round your answer to 2 decimal places.

Calculate the debt-equity ratio.

Note: Round your answer to 4 decimal places.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students